The Lovell team had to take down the flags as repair work started this week on the block in Kelmscott Gardens in Hammersmith.
But the move infuriated residents who had spent the weekend decorating their building in support of our boys in South Africa.
Local MP Andy Slaughter was called in to meet with senior Lovell management to try and diffuse the situation.
Resident Timothy McCarthy said: “We spent hours doing this on Saturday and it was heart-breaking to come out on Monday and see them all gone.”
Lovell insisted they only took down the decorations because of health and safety concerns but have now agreed to re-install two large flags and several smaller flags.
Steve Coombs, Lovell regional director, told the Enquirer: “We are just as keen to show our backing for the England team, but we can’t have members of the public seriously risking their safety by climbing more than 40 feet up the outside of scaffolding to put up flags.
“We’ve discussed this with residents and I’m really pleased that we’ve been able to come to an agreement for our construction team to put up the flags in a way that is safe, so we can all show our support for the national side.”
Work on repairing the buildings is expected to take eight weeks.